Blossom, Inc. prepared the following master budget items for July: Production an
ID: 2463362 • Letter: B
Question
Blossom, Inc. prepared the following master budget items for July:
Production and sales
36,000
units
Variable manufacturing costs:
Direct materials
$
36,000
Direct labor
$
72,000
Variable manufacturing overhead
$
54,000
Fixed manufacturing costs
$
100,000
Total manufacturing costs
$
262,000
During July, Blossom actually sold 42,000 units. Prepare a flexible budget for Blossom based on actual sales. (Do not round your intermediate calculations.)
Production and Sales
UNITS
Variable manufacturing costs
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing costs
Total manufacturing costs
Blossom, Inc. prepared the following master budget items for July:
Explanation / Answer
Variable Manufacturing Costs: for 42,000 units
Direct Material :$36,000/36,000 x 42,000=$42,000
Direct Labor: $72,000/36,000 x 42,000=$84,000
Variable Manufacturing Overhead=$54,000/36,000 x 42,000=$63,000
Production and Sales
42,000
Units
Variable Manufacturing Costs:
Direct Materials
$ 42,000
Direct Labor
$ 84,000
Variable Manufacturing overhead
$ 63,000
Fixed Manufacturing Overhead
$ 100,000
Total Manufacturing Cost
$ 289,000
Production and Sales
42,000
Units
Variable Manufacturing Costs:
Direct Materials
$ 42,000
Direct Labor
$ 84,000
Variable Manufacturing overhead
$ 63,000
Fixed Manufacturing Overhead
$ 100,000
Total Manufacturing Cost
$ 289,000